The following information applies to the questions displayed below.] Shadee Corp. expects to sell 630 sun visors in May and 410 in June. Each visor sells for $24. Shadee’s beginning and ending finished goods inventories for May are 75 and 45 units, respectively. Ending finished goods inventory for June will be 60 units. ! Each visor requires a total of $4.00 in direct materials that includes an adjustable closure that the company purchases from a supplier at a cost of $1.50 each. Shadee wants to have 31 closures on hand on May 1, 23 closures on May 31, and 20 closures on June 30. Additionally, Shadee’s fixed manufacturing overhead is $700 per month, and variable manufacturing overhead is $1.75 per unit produced. Required: 1. Determine Shadee's budgeted cost of closures purchased for May and June. 2. Determine Shadee's budget manufacturing overhead for May and June. Required 1 Required 2
[The following information applies to the questions displayed below.]
Shadee Corp. expects to sell 630 sun visors in May and 410 in June.
Each visor sells for $24. Shadee’s beginning and ending finished
goods inventories for May are 75 and 45 units, respectively. Ending
finished goods inventory for June will be 60 units.
!
Each visor requires a total of $4.00 in direct materials that includes an adjustable
closure that the company purchases from a supplier at a cost of $1.50 each. Shadee
wants to have 31 closures on hand on May 1, 23 closures on May 31, and 20 closures
on June 30. Additionally, Shadee’s fixed manufacturing
and variable manufacturing overhead is $1.75 per unit produced.
Required:
1. Determine Shadee's budgeted cost of closures purchased for May and June.
2. Determine Shadee's budget manufacturing overhead for May and June.
Required 1 Required 2
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